CAR Group (CAR) $39.92

We have been targeting the $40 area for CAR since we went long in April and we see no reason to change our stance. It’s a solid company, growing nicely, especially through international expansion, but it’s now trading well above its average P/E of the last 5 years. In simple terms, we believe there is a lot of good news already built into its share price around $40.

• We continue to like CAR as a business but it’s getting stretched – our next move on CAR is likely to be profit-taking.